World Bank Backs Bosnia's Energy Transition with $90.7M Loan
SARAJEVO (Reuters) -The World Bank has approved a $90.7 million loan to support Bosnia and Herzegovina's "just transition" to renewable energy in former coal regions under the Balkan's country's national energy and climate plan, the bank said on Monday.
The bank's Board of Executive Directors also approved a $3.3 million grant to enhance the country's energy independence, foster new job opportunities and strengthen local economies in former coal regions.
The project aims to help re-purpose land in the former northern coal mines of Banovići and Kreka and install renewable energy systems there, and facilitate the closure of underground works in Zenica in central Bosnia, the bank said.
It will also provide social protection measures and skills development programs to workers and communities seeking jobs outside the coal sector.
"This new project is an opportunity to boost Bosnia and Herzegovina's energy security while supporting communities, making sure no one is left behind," said Christopher Sheldon, World Bank Country Manager for Bosnia and Montenegro.
A World Bank report last year estimated the country would need $6.8 billion to tackle climate change and support its green transition.
Bosnia produces about 60% of its electricity from coal-fired power plants and the rest mainly from hydro. It has set a target of a 43.6% share of renewable energy in its power production in 2030, but the transition has been slow.
($1 = 0.8805 euros)
(Reporting by Daria Sito-Sucic; Editing by Tomasz Janowski)
